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Nifty Closes Near 11,550; Financial and Media Stocks Outperform

August 26 2020
Today’s Action

Nifty, +0.7%; Sensex, +0.6%; Nifty Midcap, +0.5%; Nifty Smallcap, +1.1%; Model Portfolio, -0.8%

Market Pulse Confirmed Uptrend

Nifty, after opening above 11,500, remained volatile and traded mostly sideways in the first half of the trading session. However, in the second half, it showed directional moves and closed the day near 11,550, holding meaningful gains. Volume was on the higher side compared with the previous session. Broader markets continued to maintain the positive momentum. Nifty Midcap and Smallcap closed with gains of 0.5% and 1.1%, respectively.

On the sectoral front, it was a mixed action. On the positive side, Nifty Media advanced the most with a gain of 2.5%. Further, Financial stocks continued to remain bullish for three consecutive sessions with Nifty Pvt Bank and Nifty Bank closing more than 1.4% higher. On the flip side, Nifty FMCG and Nifty Pharma were down 0.2% and 0.1%, respectively. Market breadth was skewed toward advancers. Of 2,187 stocks traded, 1,076 advanced, 752 declined, and the remaining traded flat.

The Indian market remains in a Confirmed Uptrend. We would like to see fresh names flexing their muscles for a sustainable rally. Finding favorable entries into powerful breakouts may be the best use for new money in the current market. However, things can change quickly due to high volatility. We are operating in an uncertain environment where information is distributed unevenly, wherein outside forces, either intentionally or unintentionally, affect prices across various time frames. We will continue to monitor the behavior of the market and keep an open mind as to how it unfolds.

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